pan>)--A.M. Best Europe Rating Services Ltd. has commented that the
financial strength rating of A- (Excellent) and issuer credit rating of
a- of Pozavarovalnica Sava d.d. (Sava Re) (Slovenia)
remain unchanged following the announcement of the acquisition of an
additional share in the Slovenian insurance company, Zavarovalnica
Maribor d.d. (Maribor). The outlook for all ratings remains stable.
“Risk Management and the Rating Process for Insurance
Maribor is one of Slovenias leading direct insurers, and by acquiring
the remaining shares of Maribor, Sava Re will become one of the largest
insurance groups in the Western Balkans. In A.M. Bests opinion, the
improved business profile will strengthen the companys competitive
position in its domestic market.
Sava Re, together with its minority shareholder the Slovenian
Restitution Fund (SOD) (a government related entity), has signed a share
purchase agreement for the remaining 50.99% share of Maribor. Sava Re
will invest EUR 15 million for an additional 11.79% share, increasing
its total shareholding in Maribor to 60.47%. According to A.M. Bests
proprietary capital model, Sava Res level of risk-adjusted
capitalisation will remain supportive of the current ratings.
Concurrently, SOD will contribute EUR 50 million to achieve an ownership
of 39.21%. The potential impact of this transaction has already been
factored in the current ratings.
Sava Re will hold a General Meeting on 11 January 2013, voting on
increasing the share capital by EUR 55 million by the end of April 2013,
in order to purchase the shareholding of the SOD in Maribor.
The methodology used in determining these ratings is Bests Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Bests rating process and contains the different rating criteria
employed in the rating process. Key criteria utilised include:
Catastrophe Analysis in A.M. Best Ratings; Rating Members of
Insurance Groups; Risk Management and the Rating Process for Insurance
Companies, Equity Credit for Hybrid Securities; and Understanding
Universal BCAR. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
In accordance with Regulation (EC) No. 1060/2009, the following is a
link to required disclosures: A.M.
Best Europe - Rating Services Limited Supplementary Disclosure.
A.M. Best Europe Rating Services Limited is a subsidiary of A.M.
Best Company. Founded in 1899, A.M. Best Company is the worlds
oldest and most authoritative insurance rating and information source.
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Information Source: Business Wire